Whoa this is awesome, congrats on launch. I was following along with https://Increase.com which seems to be in the same realm (former Stripe folks)
Column – a chartered bank for developers
51–60 of 299 posts
Re: Column – a chartered bank for developers
#52Brilliant. Wish you the best of luck!
Re: Column – a chartered bank for developers
#53Looks awesome. Plan to support RTP? FedNow?
Re: Column – a chartered bank for developers
#54Congrats on launching! I just want to vent about something bank-related, and hopefully bait someone to tell me how this solves it. Or something else solves it. Have you ever heard how you could pay off your mortgage a lot quicker by making bi-weekly payments instead of monthly? Or how you can include extra with your payment and instruct your bank to apply it directly to the premium, helping you reduce your interest?…
I am able to add additional premium payments to my payment, or as a separate payment, via my online mortgage payment site. It sounds like the bank/site your loan is under is actively hostile towards such payments. I don't know enough about mortgages to know how to help you solve your side, though.
The most sad part is, while I'm not OP, I had a bank that supported bi-weekly payments, my mortgage was sold, and the new bank doesn't. What a kick in the pants!
Re: Column – a chartered bank for developers
#55Re: Column – a chartered bank for developers
#56Congrats on launching! I just want to vent about something bank-related, and hopefully bait someone to tell me how this solves it. Or something else solves it. Have you ever heard how you could pay off your mortgage a lot quicker by making bi-weekly payments instead of monthly? Or how you can include extra with your payment and instruct your bank to apply it directly to the premium, helping you reduce your interest?…
An interesting thing I heard is that is not so convenient to pay off the mortgage earlier. Mortgages are debt with 1-3% per year.
You could take the money you already have and put it in an ETF covering the whole market which kept for a long time (10 years) in average will return you 5-8% per year.
I also had the instinct of paying off the mortgage faster if I could until they explained me that. Never had chance to do it.
I'm interested in hearing some expert opinion about it!
Re: Column – a chartered bank for developers
#57Congrats on launching! I just want to vent about something bank-related, and hopefully bait someone to tell me how this solves it. Or something else solves it. Have you ever heard how you could pay off your mortgage a lot quicker by making bi-weekly payments instead of monthly? Or how you can include extra with your payment and instruct your bank to apply it directly to the premium, helping you reduce your interest?…
> Have you ever heard how you could pay off your mortgage a lot quicker by making bi-weekly payments instead of monthly? Or how you can include extra with your payment and instruct your bank to apply it directly to the premium, helping you reduce your interest?
Generally speaking you don't want to do that.
A mortgage with an interest rate of like 3% (to which anyone in the last year refinanced or, or got on purchase - mine's 2.675%) is well below inflation. This means that having the loan is actually earning you money. When inflation is 8.5% and you're paying 3% interest on that loan, you're actually making 5.5% per annum by paying back the loan with future, inflated dollars.
That's before you factor in the mortgage interest tax deduction, and opportunity cost.
All in, not paying off your mortgage faster is likely earning you 6-7% per annum before you factor into account opportunity cost. On a Series I savings bond, that opportunity cost is like [edit] 7.11% [1].
Each time you pay into a Series I bond instead of paying off your mortgage you're earning about 15% per annum on that money vs paying off early.
You want to keep your low-interest mortgage for as long as you possibly can, deduct the interest, and set aside anything you would have put towards early payments. If interest rates ever drop below what you're paying, refinance. Don't pay it off early unless your mortgage APR minus deductions is higher than inflation.
[1] https://www.treasurydirect.gov/indiv/products/prod_ibonds_gl...
Re: Column – a chartered bank for developers
#58Congrats on launching! I just want to vent about something bank-related, and hopefully bait someone to tell me how this solves it. Or something else solves it. Have you ever heard how you could pay off your mortgage a lot quicker by making bi-weekly payments instead of monthly? Or how you can include extra with your payment and instruct your bank to apply it directly to the premium, helping you reduce your interest?…
Can you name your bank please so to make it a negative review on their bad business practises?
Re: Column – a chartered bank for developers
#59A little off topic, but I find it amusing phone booths have been reinvented. Also funny they look like refrigerators:
Cool that a husband wife team is doing this, I wonder what their relationship is like.
Re: Column – a chartered bank for developers
#60Earlier quoted context omitted.
This looks like it's US only right now, is that correct? What are your plans to offer these services in other countries?
We plan on rolling out some corresponding banking services this year to help people with multi-currency accounts and international wires - but it would still be under our US charter. No short term plans to go international - there's a lot of ground we need to cover here. We tend to like to go very deep in an area instead of getting to spread thin.
I can tell you MANY countries are NOT being served by services like STRIPE (South Africa for example) ! I always feel like there is a big opportunity bringing "these financial startups" to where the major players are NOT.
Congrats on releasing ! :) I would use it, if it was available in South Africa :P